ChinAI #346: Reputation Collectives - how international industry associations have helped raise China's safety standards in high-risk technologies
My latest article on how international private governance could play a role in AI governance
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Reputation Collectives: how international industry associations influence China’s safety standards in high-risk technologies
Many policymakers and researchers see China as the most likely source of an AI accident. In a 2023 Foreign Affairs article, Bill Drexel and Hannah Kelley declared, “Due to Beijing’s lax approach toward technological hazards and its chronic mismanagement of crises, the danger of AI accidents is most severe in China.” In some ways, this is an incredibly bold claim to make, given the consequences — U.S. policymakers and AI lab leaders exploit this assumption to justify their own inaction on AI safety.
In another sense, this claim is not very bold at all. After all, it is in line with conventional wisdom and empirical evidence that technological accident risks are high in authoritarian regimes due to limited transparency and civil society guardrails. See: Chernobyl.
Yet, China has achieved remarkable safety gains in certain high-risk technological domains, including civil aviation and nuclear power. How?
Co-authored with GW PhD student Dennis Li, my latest article in Review of International Political Economy presents an unexpected answer: in industries where one firm’s accident damages the reputation of all others, international industry associations can help improve safety standards in emerging economies. In these high-risk domains, firms must protect the industry’s reputation as a shared resource:
For industries in which an accident in one company damages the reputation of all others, industry reputation functions as a common-pool resource that motivates firms to collectively monitor its consumption and discourage misuse (i.e., track and deter any reputation-depleting actions) (Barnett & King, 2008, p. 1152; Ostrom, 1990). For example, after the Three Mile Island accident, Bill Lee, president of a major US utility company, spearheaded the creation of the Institute of Nuclear Power Operations (INPO), which is often held up as an exemplary model for industry self-regulation. In a speech after the accident, Lee aptly captured the notion of an industry’s collective reputation when he stated that all nuclear power plants were ‘hostages of each other’ (Cantelon, 2016, p. viii, emphasis added).
We label this the “reputation collectives” mechanism of international private regulation, differentiating it from a more familiar and well-studied mechanism of “certification clubs” (think: fair trade coffee). For instance, when it comes to peer pressure, certification clubs rely on public naming and shaming: completely transparency allows NGOs and the public to shower praise on safety leaders and heap scorn on laggards. In contrast, reputation collectives employ internal benchmarking: members share safety results and conduct peer reviews, but this information is not disclosed outside the group in a way that could single out a particular firm (see figure below).
An earlier version of this paper was titled “Industrialists Anonymous”, as a nod to Alcoholics Anonymous, another peer group that regulates behavior by encouraging candid disclosures within a confidential setting.
Drawing on expert interviews and Chinese-language sources, we examine interactions between international industry associations and Chinese firms in three high-risk technological domains: nuclear power (1987-2016), civil aviation (1990-2008), and chemicals (2002-2021). In each of these cases, the relevant industry association — the World Association of Nuclear Operators (WANO), the International Air Transport Association (IATA), and the International Council of Chemical Associations, respectively — shaped China's safety improvements through the reputation collectives pathway. They treated industry reputation as a communal good, guarded information on member performance from external stakeholders, and subsidized weak-link firms to improve their safety practices.
When I started this project many years ago, I was expecting to trace interactions between the IAEA or ICAO (the international public regulators) and Chinese authorities. However, when I dug more into these cases, I grew more curious about the role of international industry associations WANO and IATA. I want to share two snippets from the empirical cases that demonstrate how Chinese interactions with the international private regulators sometimes raised standards beyond what the public regulators could implement. First, consider WANO (rhymes with Bono):
Next, here’s a snippet from our IATA case study:
We conclude by considering the implications for the governance of AI, in which voluntary industry commitments are becoming more prevalent: “Our paper suggests that an important variable for the design of these initiatives is whether the AI industry develops a collective safety reputation. If it does, then the effectiveness of global private governance will rest on the features of reputation collectives: low entry requirements in pursuit of universal membership, avoidance of public naming-and-shaming, and reliance on socialization and peer-to-peer learning to improve the safety performance of laggards.”
What’s the closest thing we have to an industry association dedicated to AI safety? It’s probably the Frontier Model Forum, but it only includes six U.S. companies and weirdly frames its mission to be “focused on addressing significant risks to public safety and national security (emphasis mine).” This national approach will likely prove inadequate, if our paper’s historical insights are taken seriously.
Full article available open-access: Reputation collectives - how international industry associations influence China’s safety standards in high-risk technologies
ChinAI Links (Four to Forward)
Two follow-ups on industry-led efforts in AI Safety/Security Governance Report
A few weeks ago, I flagged the China AI Industry Alliance’s “AI Security and Safety Commitments.” Currently, 22 have signed on to these commitments, and 18 have disclosed their security and safety practices as part of the alliance’s voluntary disclosure initiative. Two follow-ups on this front:
AI governance researcher Julia Chen shared with me an article indicating that the sharing of company disclosures in July 2025 refers to a list of 43 examples of typical practices on the Security and Safety Commitments website. These are not attributed to particular signatories.
*My view: these seem way too vague to be helpful; I wish there was more transparency and attribution to particular firms. From what I’ve seen, the two reports that disclose the most specifics on what Chinese companies’ safety and security practices are: 1) Tencent’s Large Model Safety and Ethics Research Report 2024 (ChinAI translation and coverage); 2) Alibaba’s The Large Language Model Technology development and governance practice report. I’ve translated the first for ChinAI but would welcome help on the latter.
A couple weeks ago, I wrote, “These have been released for over a year, but I don’t think there’s been any English-language coverage of them (and I certainly haven’t picked up on them).” Fortunately, I was wrong! Scott Singer had a great Carnegie analysis on these commitments, comparing them to “ongoing global industry-led efforts to put safeguards in place for frontier AI piloted at last year’s AI Summit in Seoul, known as the Seoul Commitments.”
Should-read: China’s AI Boyfriend Business Is Taking On a Life of Its Own
For Wired, Johanna Costigan reports on China’s Gen Z women and the booming AI boyfriend business. One platform Xingye (星野) allows users to customize their AI companions.
Should-read: Support for Washington Post international employees
Sadley, the Post laid off some stellar China correspondents along with their local partners; this type of investigative, fact-checked reporting (with editorial guidance) is not easily replaced. Lily Kuo shared this gofundme link: “I was the Washington Post’s China bureau chief until last year. So much our coverage depended on our local researchers. Some left China so that they could do their work more safely. Now their future is uncertain.”
Thank you for reading and engaging.
*These are Jeff Ding’s (sometimes) weekly translations of Chinese-language musings on AI and related topics. Jeff is an Assistant Professor of Political Science at George Washington University.
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